Global food waste set to hit US$540B in 2026, study warns

GLOBAL – Global food waste could cost the economy about US$540 billion in 2026, up from US$526 billion a year earlier, according to a new study released in January.

Label and packaging solutions firm Avery Dennison shared the estimate after surveying nearly 3,500 food retailers worldwide and working with the UK Centre for Economics and Business Research on economic modelling. The study shows that food waste keeps rising despite repeated calls for action from governments, businesses, and civil groups.

The report links the growing bill to weak stock control, transport losses, and rising costs across the food system. It also shows that waste now drains a large share of company income at a time when food prices stay high in many markets.

Meat and produce drive losses

Meat stands out as the biggest source of food waste by value. The study estimates that meat losses could reach US$94 billion in 2026, which equals almost one fifth of the global total. About 72 percent of supply chain managers in the meat sector rank waste as their main concern.

Fresh fruit and vegetables follow closely, with losses expected to hit US$88 billion. Short shelf life and weak cold chains continue to push waste higher, especially during transport and storage.

Business leaders point to internal gaps as a major cause. About 51 percent blame poor stock planning and overstocking, while 56 percent say they lack clear insight into how much food goes to waste during transport.

“54% of executives indicate that these costs have increased over the past three years due to rising food inflation and geopolitical instability, creating a double loss effect. Not only do distributors incur higher input costs, but by not addressing waste, they also miss the opportunity to turn those costs into potential sales,” the study states.

Heavy cost to company revenue

Avery Dennison estimates that food waste costs companies about 33 percent of their total revenue on average. The firm says retailers sit in a strong position to cut losses if they improve tracking at product level and work more closely with suppliers and logistics firms.

“The imperative is clear: food waste is not only an environmental and societal issue, but a concrete and measurable brake on growth. Retailers are uniquely positioned to drive a transformation of the food system that can convert losses into measurable value. By broadening product-level visibility and strengthening collaboration across the supply chain, the industry can reduce projected costs by US$3.4 trillion by 2030, while unlocking significant value potential, building operational resilience, and generating sustainable environmental and social impacts,” the company says.

The warning echoes earlier findings from global bodies. In 2024, the Food and Agriculture Organization reported that the world wasted about 1.05 billion tonnes of food in 2022. Households caused close to 60 percent of that total, restaurants accounted for 28 percent, and retailers made up the remaining 12 percent. At the same time, about 8 percent of the global population continued to face hunger, underlining the scale of the challenge.

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